New Hoong Fatt Holdings Bhd (NHF) plans to invest up to RM20 million in a venture capital fund established by Cypress Drive Ventures Sdn Bhd as part of its strategy to diversify investments and explore new growth opportunities.
The proposed investment will be undertaken through its wholly-owned subsidiary, Jhi Soon Manufacturing Industries Sdn Bhd.
In a filing with Bursa Malaysia, NHF said Jhi Soon had signed a share subscription agreement to acquire up to 20 million Class A redeemable preference shares in the fund at RM1 per share, representing a maximum investment commitment of RM20 million.
The company said the investment forms part of its broader capital allocation strategy, allowing the group to gain exposure to a diversified portfolio of early-stage businesses and high-growth investment opportunities.
Through the professionally managed venture capital fund, NHF aims to explore emerging technologies, innovative business models and new market opportunities that could contribute to its long-term growth.
The investment will also enable the group to diversify its financial interests beyond its existing operations while benefiting from the expertise of professional fund managers.
Despite the planned investment, NHF emphasised that it will remain focused on its core automotive replacement parts business.
The proposed venture capital investment reflects the group’s efforts to identify additional growth opportunities while maintaining its existing business priorities.
